Policy tracker: How best do countries promote EVs?

March 25, 2025

From the newsletter

African countries are pulling in different directions on how best to support electric mobility. On one hand, countries like South Africa are imposing high tariffs on imported EVs to protect their local manufacturers, who are also being handed subsidies. Others like Cameroon and Zimbabwe are opening the floodgates to cheaper EV imports.

  • The difference in approaches is informed by the existing market realities in each country. Countries such as South Africa and Morocco have more mature EV manufacturing industries which they need to protect from cheap imports. In contrast, Cameroon does not have these industries yet and as such imports make more economic sense. 

  • EVs are fairly new to Africa compared to other continents, meaning that African countries are now racing to update their policies to promote EVs. In this month’s policy tracker, we found seven major policies that were either announced or will come into effect this year. 

More details

  • South Africa has introduced an incentive allowing taxpayers to claim income tax allowances of 150% in EV manufacturing investments. It has also allocated $54.27 million to boost local production of EVs. 

  • In January, South Africa’s neighbor Zimbabwe also reduced its import duty on EVs from 40% to 25%. Reducing import duty aims to make EVs more affordable in the country, where the uptake of EVs is minimal. Zimbabwe is aiming for a market penetration of EVs of 33% by 2030.

  • Rwanda is also gradually phasing out fuel motorcycles in its capital Kigali. The Rwandan government made this announcement in November 2024 before it took effect in January 2025. In this policy shift, non-electric motorcycles will remain operational until they are no longer functional. Once a motorcycle reaches the end of its useful life, the owner will need to transition to an electric model.

  • The country has similarly reintroduced an 18% Value Added Tax (VAT) on hybrid vehicles which is aimed at promoting pure EVs. However, fully-electric vehicles remain exempt. The new tax measure will take effect in July 2025 when Rwanda’s new fiscal year begins.

  • Ethiopia has also been rolling out new EV policies to support their adoption, fresh from becoming the first country in the world to put a total ban on the importation of non-electric vehicles in January 2024. The country in January 2025 introduced new guidelines to regulate the installation and operation of EV charging stations.

  • In West Africa, Cameroon has reduced import tax on EV by 50%. Starting this year, brand new imported electric cars and motorcycles, as well as their batteries and charging stations, will enjoy a 50% reduction on their taxable value over a period of 24 months.

  • This month, Kenya also announced that EV owners will be given discounts when the country enacts its National Tolling Policy. The policy, which is currently undergoing public participation, seeks to introduce toll charges on major roads to fund road maintenance and rehabilitation. The discounts on EVs is part of Kenya’s efforts to promote the shift to clean mobility solutions.  

  • These policy decisions confirm that many African nations see EVs as a way to not only make their mobility cleaner, but also cost-effective in the long term. Further, their focus is not solely on passenger cars, as electric motorcycles and three-wheelers are playing a significant role in many countries.

Our take

  • African nations are not adopting a uniform EV policy. Instead, their strategies are shaped by their specific economic, infrastructural, and environmental contexts. Countries like Rwanda and Kenya prioritize electric two- and three-wheelers to address urban transport needs, while South Africa focuses on leveraging its existing automotive industry for EV manufacturing.

  • Across the continent, inadequate electricity infrastructure and the high cost of EVs are major barriers. Policy efforts are therefore concentrated on attracting investment in charging infrastructure and creating financial incentives to make EVs more accessible.

  • Despite the challenges, there's a clear and growing recognition of the potential benefits of electric mobility in Africa. Many countries are actively exploring policy frameworks, offering incentives, and seeking international partnerships to accelerate EV adoption.